Understanding order types is essential for trading Asian stocks.
Market Order
- Executes immediately at best available price
- Guaranteed execution, not guaranteed price
- Use when: you want to buy/sell NOW
Limit Order
- Only executes at your specified price or better
- Guaranteed price, not guaranteed execution
- Use when: you want a specific entry/exit price
Stop-Loss Order
- Becomes a market order when price hits your stop level
- Used to limit losses
Asian Market Specifics
- Japan: Has daily price limit (limit up/down) — stocks can be halted if they move too much
- China: 10% daily limit (5% for ST stocks)
- South Korea: 30% daily limit
- India: Circuit breakers at 10%, 15%, 20% market-wide moves